GM finally rids of its pricy, last-remaining vacancies!
GM subleases remaining space in tower that bears its nameFund of funds Grosvenor Capital takes full floor at 767 Fifth AvenueDecember 13, 2013 05:13PM By Guelda Voien
From left: Mort Zuckerman and the GM building, at 767 Fifth AvenueU.S. automaker General Motors no longer retains a single foot of office space in the Midtown trophy tower that bears its name, it seems. GM put three remaining floors at the pricey building, at 767 Fifth Avenue, on the market last year. Now, financial firm Grosvenor Capital Management has inked a deal for the last remaining portion of that space, the 14th floor, The Real Deal has learned from CompStak.
Grosvenor, a leading “fund of funds” for fellow hedge funds, has signed a seven-year lease for 38,100 square feet of space, CompStak data show. Grosvenor is currently located at 540 Madison Avenue, according to their website. It was not immediately clear who brokered the deal, and Grosvenor declined to comment.
GM once leased a hearty portion of the building, which is now owned by Mort Zuckerman’s Boston Properties and Zhang Xin, co-founder of Chinese commercial real estate developer SOHO China, and Brazilian banking titan Moise Safra. Over the years, the automaker’s presence dwindled and in July 2012 they put the last 114,000 square feet – floors 14, 15 and 16 – on the sublease block, according to published reports.
In the past, a Jones Lang LaSalle team of Peter Riguardi and Lloyd Desatnick represented GM, but it was unclear if they were involved in this deal. JLL, Boston Properties and GM did not immediately return requests for comment.
The 2 million-square-foot tower commands some of the city’s priciest office rents. Other tenants at the 50-story property, between 58th and 59th streets, include Macklowe Properties, Estee Lauder Companies and Icahn Enterprises.
The rent was in the low $80s per square foot, according to CompStak.
In October, agribusiness conglomerate Continental Grain Company signed a 38,100-square-foot, seven-year sublease for the entire 15th floor. In September, GM sublet the entire 16th floor of the property to investment firm Reservoir Capital, as The Real Deal reported.